Will EU Penalties Discourage Price Fixing?

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Jacob
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Re: Price Fixing
Jacob   12/31/2012 3:07:36 AM
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Cryptoman, I think there is nothing difficult in that. There are government agencies to fix and monitor fair pricing policy for various commodities and they are doing fine. Similarly they can constitute another agency with industrial/market/business experts for monitoring and price fixing. If no such super monitoring agencies are in place, companies can fix the price without any justification.

Cryptoman
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Re: Price Fixing
Cryptoman   12/18/2012 1:54:15 AM
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@Jacob

It is a difficult one for the government I think. The only thing that can be done is to escalate the fines whilst shortening the court case decision making delays. I think the cartels are formed in a very high degree of secrecy and it is difficult to know about them promptly. The time needs to pass so that an evidence of such an illegal act can somehow leak into the public domain. I am sure only a handful of people in those large companies will know about such cartels. An average employee will never have the exposure to such information. Therefore, the level of secrecy determines the safety of such illegal acts that prevent from governments finding out.

It is definitely very harmful to the end customer and to the fundamentals of free trade in terms of getting a competitive deal on products.

Cryptoman
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Re: Probably no
Cryptoman   12/18/2012 1:45:58 AM
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@_hm

I totally agree on the timescales of this decision. It is funny to see that the manufacturers have to pay a fine for the unfair play they have performed on the CRT technology that does not exist anymore! The court decision is way too late for this. The pace of the the legal system in the third world countries is rather slow because the system does not function properly. In some countries, the suspects are imprisoned first under the assumption that they are guilty. Until the suspect proves that he/she is innocent, he/she remains in prison; even for a few years on end.

In the EU and the rest of the developed world, the suspect is assumed to be innocent until proven guilty (which is the right way). However, this legal method  works slower than the backward one I mentioned above.

Maybe in commercial cases, the funds from the suspects should at least be blocked promptly to save time and kept blocked throughout the case. That may put off any potential lawbreakers before they even think of mk,ng such an attempt.

Jacob
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Re: Probably no
Jacob   12/17/2012 11:37:59 PM
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_hm, I think government and commercial departments has to be more vigilant on such issues. Otherwise finally, such companies will move a part of such burdens to customer through various methods. The only thing is government agencies has to monitor the entire process at various levels.

Jacob
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Price Fixing
Jacob   12/17/2012 11:34:38 PM
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Cagri, I personally feel that it's a government responsibility to protect citizen's right. Such monopolistic nature of business can harm the citizen's right to get a good product at a better price. Again "will such penalties discourage price fixing" is a big question; at the end companies may forced to share a part of these penalties with customers by hiking the price of product.

_hm
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Probably no
_hm   12/17/2012 7:41:46 PM
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Penalties are very late and very small. This is deceptive to consumers. Price fixing looks quite prevalent now too.



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